Credit institutions headquartered in these financial centers will not be bound by restrictions on to foreign ownership or foreign investment conditions when providing services there or across borders.

Hanoi is advancing its efforts to integrate technology into urban management by expanding the pilot program for cashless parking payments throughout the city.

One of the key priorities for the banking sector is to support small and medium-sized enterprises (SMEs), as they generate a large number of jobs and contribute significantly to the economy.

The number of fintech companies have increased rapidly in Vietnam in recent years as the industry has high growth potential while the government encourages cashless transactions.

Japanese experts have addressed challenges to help Vietnam boost its financial market.

As of present, eight out of 17 banks subject to Basel II implementation have met the target.

The growth rate was less than half of the 14% target set for 2019.

Fitch-rated Vietnamese banks would need US$4.1 billion of additional capital, of which 90% is accounted for by the state-owned banks.

Vietnam Asset Management Company (VAMC) expects to purchase bad debts worth VND20 trillion (US$856.84 billion) with special bonds and VND4.5 trillion (US$192.79 million) with cash at market value.

In 2019, the central bank aims to bring down the bad debt ratio in the sector to below 2%, and the ratio of bad debts and potential loan losses at below 5%.

It is too early to say Vietnam’s public debt is at safe level, especially when the available fund could only cover the interest rate, not the principal amount, said Minister of Finance Dinh Tien Dung.

This showed improvements in financial capacity of credit institutions over the years.

The State Bank of Vietnam has bought in a large amount of foreign currency in a bid to ensure national finance-monetary security and greater capacity to intervene the foreign exchange market if needed.

The National Assembly`s Finance-Budget Committee attributed the lower debt public ratio to government’s tightened state budget overspending and ongoing debt restructuring efforts that helped ensure the state’s repayment capacity and relieve pressure on public debt compared to previous periods.

Of the total tax arrears, 35.2% are deemed collectible, 19.4% are tax penalty due to late payment and violation of tax laws, while the remaining 45.5%, equivalent to VND37.64 trillion (US$1.6 billion), is irrecoverable debts.

Vietnam currently has 17 consumer finance companies, whose total outstanding loans reached more than US$5 billion by the end of last year.

The draft includes some highlights of the regulations on offering securities during initial public offerings, adding credit rating conditions to bond issuers, attaching initial public offerings (IPOs) with listing, trading registration on the stock market, and offering shares below the par value.

The MoF would promptly coordinate with Hanoi and Ho Chi Minh City Stock Exchanges to evaluate, analyze and investigate transactions which are believed to break regulations.

Mnuchin expected Vietnam and the US to continue discussing Vietnam’s monetary policy.

After several years of high credit growth, domestic credit of the private sector has risen to 130% of GDP from just 20% some 20 years ago.

Vietnam posted the highest rate of cash on delivery for internet purchase at 90.17%, significantly higher than the second ranked Indonesia of 65.30%.

Local banks should focus on improving management capability and raising operational efficiency, which can be achieved through transformation, including digital transformation and workforce transformation.

The Ho Chi Minh City Stock Exchange (HoSE) is reviewing two new products for the market, including restricted shares and non-voting depository receipt (NVDR), aiming to facilitate the accessibility to Vietnam’s capital market for foreign investors.